There may not be 5 times more available gold than silver, instead perhaps 10x more!

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There may not be 5 times more available gold than silver, instead perhaps 10x more!

Front page of The Phoenix Gazette of April 5th, 1909
Explorations in the Grand Canyon

Personally I would not acquire gold over silver, even if there is not a shred of truth to this "legend". Sure gold is better than fiat, but silver wins in every logical analysis. Gold wins the emotionally based arguments. I do have about 1¼ ounces of gold spread over 6 pieces including a gram bar.

If you do not trade at least half of your gold ounces for the equivalent silver rounds today, I believe you lose out on a potential gain.

Back to the linked story...Poring over the map, we were amazed to see that much of the area on the north side of the canyon has Egyptian names. The area around Ninety-four Mile Creek and Trinity Creek had areas (rock formations, apparently) with names like Tower of Set, Tower of Ra, Horus Temple, Osiris Temple, and Isis Temple.

In the Haunted Canyon area were such names as the Cheops Pyramid, the Buddha Cloister, Buddha Temple, Manu Temple and Shiva Temple. Was there any relationship between these places and the alleged Egyptian discoveries in the Grand Canyon?

We called a state archaeologist at the Grand Canyon, and were told that the early explorers had just liked Egyptian and Hindu names, but that it was true that this area was off limits to hikers or other visitors, "because of dangerous caves."

Indeed, this entire area with the Egyptian and Hindu place names in the Grand Canyon is a forbidden zone - no one is allowed into this large area. We could only conclude that this was the area where the vaults were located. Yet today, this area is curiously off-limits to all hikers and even, in large part, park personnel.

I believe that the discerning reader will see that if only a small part of the "Smithsoniangate" evidence is true, then our most hallowed archaeological institution has been actively involved in suppressing evidence for advanced American cultures, evidence for ancient voyages of various cultures to North America, evidence for anomalistic giants and other oddball artefacts, and evidence that tends to disprove the official dogma that is now the history of North America.

And some analysts say silver hasn't yet caught the attention it deserves.

Investors "are not taking notice yet it looks like the world is far more focusing on gold," said Gijsbert Groenewegen, a managing partner at Silver Arrow Capital Management.

That's fair to say given that silver's more than two-year high above $19 pales in comparison to gold's highest-ever settlement price of more than $1,243 an ounce in New York for its most-active futures contract.

Groenewegen pointed out that the average gold-silver ratio is 52, but the ratio is currently around 63, "so silver has some catching up to do."

"While silver has outperformed gold in recent months, it has massively underperformed gold over the long term," said Mark O'Byrne, a director at GoldCore, an international bullion dealer.

Gold's nearly 50% above its nominal high in 1980 of $850, while silver remains at less than 60% of its 1980 high of around $50, he said.

"Investors continue to view silver as gold's ugly sister," he said.

There has been no talk of pension funds, high net worth individuals, or large hedge funds investing in silver as of yet, O'Byrne said. "This will change in the coming months, and this is when silver is likely to really move up in price."

Playing follow the leader

For now, in the world of precious metals, gold remains the king.

"Silver is 'poor man's gold' and will ride on the coattails of gold, but gold is the true hedge against the demise of fiat currency," said Mark Leibovit, chief market strategist for VRTrader.com.

Even so, it's silver that's poised to garner the attention in the months and years to come.

"Silver will continue to follow gold moves in the short term and medium term but in the long term, silver will move on its own," said Chintan Karnani, chief analyst at Insignia Consultants in New Delhi.

Silver's "quality as money" is already starting to move into the picture as investment demand in the iShares Silver Trust exchange-traded fund (CONSOLIDATED:SLV) alone jumped 200 metric tons over the last seven days, said Julian Phillips, an editor at SilverForecaster.com.
This week in Mutual Funds: Gold's fat finger

Gold-oriented funds and ETFs are the market's best performers over the past month, fueled by the breakdown in Greece and the value of Europe's common currency, the euro. But this recent gold rush might not have the Midas Touch, says Jonathan Burton.

As of Thursday, silver in the trust totaled 9,191.37 metric tons and the trust's average one-year total returns, as of March 31, stands at 32.81%. See the ETF's latest data.

"Silver's price will be driven by physical demand, not by the futures market, so ETFs like the Silver Trust will be good indicators of that demand," Phillips said.

Meeting the need

Demand itself is certainly looking up.

"The U.S. Mint and Canadian Mint continue to experience very high demand for silver eagles and silver maple leafs and premiums for these coins are beginning to move up again," said O'Byrne.

And "even though silver production is rising, investment demand, alongside industrial demand, is growing quickly, eliminating what remains of lack of demand from photography," Phillips said.

He also pointed out that silver is consumed and not recovered from these sources.

So "until newly-mined silver grows in large volumes, we believe that silver demand will outpace production, thus pointing to a better future for silver than for gold," said Phillips.

Silver on the run

Many analysts also agree that silver's run is built to last.

Phillips said it's possible for silver to hit $29 "on this run alone."

There's also potential feedstock for the rally on the horizon.

Prosecutors' criminal investigation into J.P. Morgan Chase & Co. (NYSE:JPM) includes the company's activities in the silver market, "where commentators have for years been accusing them of market manipulation," said Phillips. J.P. Morgan has said that it hasn't received any notice of a criminal probe.

"If these commentators are right, then J.P. Morgan has a massive short position which will have to be closed," he said. "If that has to be done with physical silver, the silver price will leap to our target level if not higher and quickly."

Against that backdrop, the upside for silver could "ultimately be to $100, though short-term I would be grateful to see it above its $22 2008 high," said VRTrader.com's Leibovit.

Either way, "the waiting may be over and silver's strength is likely to last for two or three years," O'Byrne said. See Commodities Corner on the wait for silver's big break.

But silver investors need to have patience because when silver prices fall, "it takes a few months to start a big and speedy bull run," said Insignia Consultants' Karnani, noting that whenever gold and silver prices fall together, silver has a tendency of falling more than gold.

"Silver has more uses than gold and is much more fundamentally bullish than gold," he said. However, gold has a safe haven appeal which silver does not have, he said.

Still, "silver is a highly undervalued commodity and whenever the valuation catches up with fundamentals, silver prices will zoom," he said.

Karnani voiced confidence that silver will test $24 in 2010 and $30 in 2011.

"For a long-term investor (3-4 years), silver is an attractive investment even at the current prices," he said

No Doubts

Didn't the COT reports show an increase in the flow to GLD?...I think it's up....Cramer is just doing what he's told...watch...the shorts will quietly exit the game and no charges will ever see the light of day. It was fair warning....the shill Cramer said so when he touted gold on air....they will also take profits on the way up.

That was just the beginning. The Canadian mine owner RNC Minerals says the find, from a single cut in the mine, includes about 9,250 ounces of high grade gold. At today's gold price, that's worth some $11 million.

The amount of gold found is impressive – but so is the sheer size of the stones. One of them weighs in at more than 200 pounds, and contains about 2,440 ounces of gold. According to ABC, it "took three men to lift it onto the back of a ute," or utility vehicle.

Another large piece weighs nearly 140 pounds and contains about 1,620 ounces of gold.